<div id="readability-page-1"><div><figure></figure>The Hang Seng Index retreated by over 1.18% on Monday, continuing a sell-off that started on May 14, when it peaked at H$26,856. It retreated to a low of H$24,466, its lowest level since March 30th this year.Hong Kong stocks retreat as global rout in tech shares continueThe blue-chip Hang Seng Index retreated sharply, mirroring the performance of other global indices. In South Korea, the blue-chip KOSPI Composite Index retreated by over 8%, its worst-day performance in years.Similarly, in Japan, the Nikkei 225 Index retreated by over 3%, with Softbank and Kioxia being the top laggards. They have been the best-performing companies in Japan this year, helped by their important role in the technology industry.Technology companies were among the top laggards in the Hang Seng today, continuing a sell-off that started after the Broadcom earnings last week. Baidu, China’s equivalent to Google, plunged by 7% and is down by nearly 30% from its highest point this year. It has formed the risky head-and-shoulders pattern, pointing to further weakness.BYD Electronic, the biggest electric vehicle manufacturer, dropped by 5%, while Meituan, Semiconductor Manufacturing Company, Kuaishou Techology dropped by nearly 4% on Monday.Chinese technology companies have lagged behind their global counterparts this year, with the Hang Seng Tech Index falling by 30% from its highest point last year, while the Nasdaq 100 indices have jumped to a record high.Chinese stocks are facing major risksThe ongoing Hang Seng Index retreat is happening as investors rotate from technology companies and as risks rise. For example, there is a risk that technology stocks have become highly overvalued amid the AI surge.At the same time, the US-Iran quagmire continues. While President Donald Trump has hinted that a deal was close, the reality is that the two sides have not exchanged notes in the past few days. This explains why crude oil prices are doing relatively well, with Brent nearing the crucial milestone of $100.The market is also coming to terms with the fact that the Federal Reserve will likely deliver at least two interest rate hikes this year. A report released last week showed that the US added over 172k jobs last month. A separate report this week will likely show that the headline consumer inflation rose to 4.2% in May this year.Hang Seng Index technical analysis<figure></figure>Hang Seng Index chart | Source: TradingViewThe daily chart shows that the HSI Index has retreated in the past few days and is now at a crucial support level of $24,465. It has dropped to the lowest point since March 30th this year.The chart has moved below the 50-day Exponential Moving Average (EMA). It also formed what looks like a head-and-shoulders pattern, a common bearish reversal pattern in technical analysis.Therefore, the path of the least resistance is bearish, with the next key target to watch being at $24,000. This view will be confirmed if the index retreats below the key key support at $24,400.</div></div>

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The Hang Seng Index fell over 1.2% on June 8, marking its lowest level since March 30, driven by a global tech sell-off and profit-taking. Key laggards included Baidu, BYD Electronic, and Meituan. Broader market risks include potential tech overvaluation, US-Iran tensions supporting oil prices near $100, and expectations of further Federal Reserve rate hikes amid strong US employment data. Technical analysis indicates a bearish trend with the index below the 50-day EMA, targeting support at $24,000.

- The Hang Seng Index dropped over 1.18% on Monday, continuing a downward trend that started on May 14, reaching its lowest level since March 30.  
- This decline in Hong Kong stocks follows a global sell-off in tech shares, with major indices like South Korea's KOSPI Composite and Japan's Nikkei 225 also experiencing significant losses.  
- The Hang Seng Tech Index has fallen 30% from its peak last year, highlighting the risks facing Chinese technology companies amid factors such as rising interest rates and geopolitical tensions.

Here’s why the Hang Seng Index is falling by 1.20% today (June 8)